Former Chicago Bulls star Scottie Pippen at a United Center game on Nov. 8, 2010. (Nuccio DiNuzzo, Chicago Tribune)

A Chicago investment adviser who once represented former Chicago Bulls player Scottie Pippen was indicted on federal charges that he defrauded a suburban bank and two of his clients of more than $3.2 million, the U.S. attorney's office announced Thursday.

Robert Lunn, 62, was charged with five counts of bank fraud in an indictment returned by a federal grand jury Wednesday. Prosecutors allege he fraudulently obtained a $1.3 million business loan from Oak Brook-based Leaders Bank as well as separate loans of $1.4 million and $500,000 that he said were for two clients.

Lunn misrepresented to Leaders Bank the purpose of the loans for himself and his clients as well as the nature of his investment portfolio, according to the prosecutors.

When Lunn first received a $480,000 line of credit from Leaders Bank in May 2001, he said he owned millions of dollars worth of shares of Morgan Stanley and Lehman Brothers, according to the indictment. Lunn in early 2004 twice increased his line of credit, to $1.3 million, the indictment said.

The indictment alleges that Lunn arranged an unsecured bank loan of $1.4 million for a client in 2002, claiming the client wanted short-term financing to invest in an airplane. Lunn also arranged a $500,000 loan from the same bank in 2004 for another client without that client's knowledge or authorization, the indictment said.

Lunn is accused of using most of the money for his own benefit, making mortgage payments as well as paying $1.4 million to other investment clients, according to the U.S. attorney.

Neither Lunn nor Leaders Bank representatives could be reached for comment. Prosecutors said the bank lost more than $2.7 million as a result of Lunn's actions and are seeking to recover at least that amount.

Pippen in 2004 won an $11.8 million judgment against Lunn, claiming the adviser steered his money into dubious investments, including real estate and an airplane deal, according to court papers.

Each bank fraud count carries a maximum penalty of 30 years in prison, a $1 million fine and mandatory restitution, according to the office.